Recently we learnt that China was lowering its GDP growth target for this year to 7.5 per cent and is said that its expansion plans will be more consumption driven.

A stock that is exposed to China’s consumption-led growth story is AIM and Hong Kong listed Asian Citrus Holdings Ltd (ACHL):

Asian Citrus is the largest orange plantation owner and operator in China. It currently owns and operates two orange plantations: the Hepu Plantation with approximately 1.3 million orange trees in Hepu County in the Guangxi Zhuang Autonomous Region and the Xinfeng Plantation with 1.6 million orange trees in Xinfeng County in the Jiangxi province.

The plantations are located in similar latitudes to that of Florida in the US, which is well known for growing oranges.

The temperature, solar radiation, soil, water retention and topography of the Group's plantations are favourable for orange plantation.

The £547 million-capped group sells its oranges to supermarket chains, corporate customers, wholesalers and sole proprietors in China.

Asian Citrus also owns just shy of 93 per cent of Beihai Perfuming Garden Juice Company Limited, which is one of the largest producers of tropical fruit juice concentrates in China and processes over ten different varieties of tropical fruits, including pineapples, passion fruits, lychees, mangoes and papayas.

At the interim stage reported in late February, revenue for the six months ending 31 December came in at £101.8 million (2010: £61.7 million) with core pretax profit rising to £30.9 million from £20.5 million last year.

Core basic earnings per share came in at 2.4p (2010: 2.3p). On top of this the company embarked on a share buy-back programme of up to HK$250 million (£20.2 million) until the next annual general meeting, which is estimated to be in early November.

The company is trading on a 2014 forecast earnings of 5.12 reflecting a general indifferent attitude by UK investors towards a Chinese company that has been stigmatised partly by virtue that Chinese companies listed in the Western markets’ have experienced a chequered history over the past ten years.

Nonetheless investment bank Seymour Pierce suggests that the shares are undervalued with a 65p price target.

You night also note that given its dual listing, Asian Citrus qualifies as ISA eligible, something that would not be allowed normally on AIM unless it has a listing elsewhere on a Recognised Investment Exchange.

Asian Citrus is ideally poised through its leading position in the production of oranges and fruit juices to benefit from China’s increased emphasis towards home-grown consumption; particularly if you take into account the increasing demand for healthy food and sustained growth in household income.

As such, if you can stomach the associated risks with investing in Chinese companies, Asian Citrus looks to be as good as any PRC company listed in London.

The material for this report comes from Sharescope and Asian Citrus’s website. The writer does not hold any shares or derivatives in the above mentioned companies.

Some clients of Optiva Securities may hold shares in the above named companies. The views of the writer may not necessarily reflect those of Optiva Securities.

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